Politics dominated markets on Monday, with risk appetite withering in Europe as Italy lurched toward fresh elections. The region’s shares and currency reversed early gains, while U.S. equity futures pared a jump even as the America-North Korea summit appeared to be back on track. Most national gauges in Europe turned lower led by Italy’s benchmark, which plunged as populist leaders pulled the plug on their attempt to form a government and the country headed for new elections as early as the fall. The nation’s bonds also tumbled. S&P 500 futures, which jumped earlier alongside South Korean stocks, were fractionally stronger in muted trading -- it’s a holiday in both the U.S. and U.K. Oil losses deepened after Saudi Arabia and Russia said they are discussing reviving output. it had looked like a positive start to the week for global equities following a tumultuous few days, but investor concerns were never far away. U.S. negotiations with North Korea have proved unpredictable, and while the failure of populist leaders to form a government in Italy removes a threat to the euro area for now, it raises the prospect they will cement their power in a follow-up ballot. “We may now be in for an extended period of heightened uncertainty ahead of fresh elections,” said Ray Attrill, head of foreign-exchange strategy at National Australia Bank Ltd. in Sydney. Elsewhere, emerging-market stocks struggled to hold a gain as the dollar rose, while developing currencies erased an advance. The lira was the stand out performer, rallying after the central bank took steps to simplify its monetary policy. Gold fell. BLOOMBERG